Question

During India’s first seven five-year plans, the Government of India adopted ________ policy

to protect domestic industries.​

Answer 1

a socialist model of development

Answer 2

During India’s first seven five-year plans, the Government of India adopted a trade policy to protect domestic industries.​

Explanation:

• It is also known as Inward Looking Strategy.
• The prime focus of the policy was to safeguard the domestic products from international competition and to uplift domestic production.
• There were two main components under this strategy:

1. Tariffs: Tax was imposed on imported products, which made them expensive. This led to increased production and sales of domestic products.
2. Quotas: Only specific products were allowed to be imported. Due to which domestic industries started developing products to meet the market demand.